Quote:
Originally Posted by Wolven
I mean... if we were to ride the joke to competition, the answer is that the Oil and Gas sector know that Peak Oil is way sooner than they want the public to believe and their plan is to ride out the current generation of intelligence until the industry craters. No future investment is needed as that will just bleed $$ away from the profit bucket.
Also, "common sense" would tell us that when humanity passes peak oil demand and demand starts declining, the most expensive methods of extraction will be the ones to fail first under a contracting market.
At that point, if Alberta doesn't have a strong back up industry to fall back on, the whole province is going to become one of those ghost towns where everyone flees to other locales, the housing market crashes, and people, companies, and the whole province go bankrupt.
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I assume you're referring to the oil sands as the most expensive method for extraction in the bolded?
I read recently that the oil sands are now costing less per barrel than anywhere else in North America. The reason they're perceived to be so expensive is the massive capex required to get the mines up and running... But once they are, the opex is relatively minor and the life of the mines are measured decades, rather than years or even months with some of the traditional drilled wells.
I'm far from an O&G shill - literally zero connection for me or my extended family - but it seems sensible to me that if
someone is going to produce those last barrels, it might as well be us... To put it indelicately, the damage has been done (with regard to the mines, etc)... we might as well wring out as much as we can from it.